Industrial Production Growth Rate Slows Down

 

 

The growth rate of India's industrial production slowed to 4.8% in July this year due to poor performance in the mining and manufacturing sectors. According to data released by the National Statistical Office (NSO), the industrial production index (IIP), which measures factory output, grew by 4.8% in July 2023 compared to a 6.2% growth rate in the same month last year.

The data indicates that in July 2024, the mining sector recorded a growth rate of 3.7%, while electricity generation increased by 7.9%. However, the manufacturing sector's output rose by only 4.6% in July 2024, compared to 5.3% in July 2023.

For the first four months of the current fiscal year (April-July), the industrial production growth rate averaged 5.2%, slightly up from 5.1% during the same period last year. This marginal increase reflects ongoing challenges in the industrial sector, particularly in manufacturing and mining, which continue to underperform.

Retail Inflation Shows Slight Improvement

Retail inflation in August remained relatively stable at 3.65%, within the target range set by the Reserve Bank of India (RBI). The Consumer Price Index (CPI) indicated that inflation for food items decreased to 5.66% in August, compared to 6.83% in July 2024, showing a slight improvement. This reduction in inflationary pressure is a positive sign for the economy, indicating better management of food prices and other essential commodities.